A jury has overwhelmingly found in favor of Visto Corporation in a long-running intellectual property lawsuit between Visto and Seven Networks. The jury found that Seven’s mobile email service infringes on the system that Visto created over the past decade. They further found this infringement to be willful on all claims brought to trial.
Immediately following their victory over Seven Networks, Visto attorneys filed a similar suit against Blackberry provider Research in Motion (RIM). Visto is seeking an injunction and monetary damages against RIM.
“Friday’s sweeping decision against Seven Networks validates our claims that Visto’s intellectual property serves as the basis for this industry’s birth,” said Brian Bogosian, Visto’s Chairman, President and CEO. “There was no ambiguity in the jury’s decision. Likewise we believe that RIM’s infringement of Visto’s technology will be halted. Our case against RIM is based on similar technology, law and patents as the case we have just won in federal court against Seven Networks.”
“Based on Visto’s sweeping victory in court against Seven Networks on Friday, RIM must understand that there is no place in the mobile email space for this sort of behavior,” continued Bogosian. “Under the law, which protects consumers from products that contain infringing technology, RIM should not be able to sell the Blackberry system.”
“The verdict over Seven Networks is vindication for more than 10 years of investment in our own homegrown intellectual property,” said Bogosian. “Patents ensure that companies which create technology and truly foster innovation will not be harmed in the market by competitors that infringe on our technology. Visto has continued to grow in this market because of our innovation now represented by over 400 employees in 10 countries serving some of the world’s largest mobile operators. This verdict is further validation of our technology leadership in this market.”
The jury in the federal court for the Eastern District of Texas validated the claims asserted by Visto, finding that Seven Networks not only infringed on Visto’s intellectual property, but that they did so willfully. The court upheld each of the five claims and three separate patents Visto brought to trial. The jury awarded Visto damages at a royalty rate equivalent to 19.75% of Seven’s infringing products’ revenue, or about $3.6 million.
“The royalty rate awarded in this case reflects the tremendous value of Visto’s patents in the mobile space,” Bogosian said. “The court is expected to hold a hearing concerning an injunction against Seven Networks that would prohibit the further use of their infringing system.”
Daniel Mendez, Visto’s Co-Founder and Senior Vice President, created the company in 1996 to enable users to access sensitive data, including email, even behind secure corporate firewalls.
“Visto is a global leader in the mobile email market,” said Mendez, who is one of the actual inventors of the technology at issue. “We have invested tens of millions in capital from loyal and patient investors to bring our products from invention to market. But we are still a small company, and we can only succeed and innovate if large companies are kept from violating the laws that protect inventors and innovators,” Mendez said. “We’ll excel given a level playing field, but when others simply take what is ours, we must insist that the laws of the land be enforced. We ask for nothing more, and nothing less.”